The amount of growth you're seeing in India, in terms of the transformation of this economy to a digital economy…So the places I see from an equity (investment) opportunity point of view are India, Japan and the US because technology is changing the world faster than people think.”
Describing India’s demographics as “extraordinary,” Rieder emphasised that while fiscal and monetary policies can temporarily influence the economy, the long-term trajectory is largely determined by demographics and immigration. “I don't think there are enough people for the jobs available today in much of the world because you're seeing this transformation of economies and how immigration plays out,” he said citing recruitment figures from America.
On the impact of technology on the job markets, Rieder spoke of the uncertainty that AI portends. “When people talk about inflation is going to be here over the next 3-5 years, I don't think you know because I don't think you know how artificial intelligence is going to impact jobs. A number of studies suggests that 35 to 65% of the jobs are either going to be augmented or eliminated by artificial intelligence. What's driving inflation much of the world today is wages because we just don't have enough people. So, if you're going to take the workforce down a third to a half over the next number of years, it's going to have a huge impact on growth, inflation.”
“One thing I've learned about markets and investing is that markets don't react to things until the shark is right next to the boat. So, as you get closer to elections in whatever the region, you will see some pretty impactful things that can change how you're investing in different assets and what regions you're investing in,” Rieder remarked on the impact of global elections slated this year.
Click here for programme details and here to watch the sessions. Access photos from the day here
